News & Analysis as of

Insolvency WARN Act

Foley Hoag LLP

WARN Act Damages Not Subject to Massachusetts Wage Act

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Employee Creditors May Not Assert Claim for Such Damages Derivatively Against Corporate Officers - Corporate insolvencies and near insolvencies regularly generate significant claims and litigation initiated by creditors...more

Jones Day

Third Circuit Rules That WARN Act's "Unforeseeable Business Circumstances" Exception Requires That Layoffs Be Probable, Not...

Jones Day on

In Varela v. AE Liquidation, Inc. (In re AE Liquidation, Inc.), 866 F.3d 515 (3d Cir. 2017), the U.S. Court of Appeals for the Third Circuit became the sixth circuit court of appeals to rule that a "probability standard"...more

Jones Day

Without WARN-ing: Third Circuit Clarifies WARN Act's Unforeseen Business Circumstances Exception

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Valera v. AE Liquidation, Inc., the Third Circuit Court of Appeals agreed with five other circuits in holding that WARN notice was not required where an external event outside the employer's control triggering layoffs was...more

Dechert LLP

Third Circuit Holds No Need to Warn Under WARN ACT Unless Circumstances Causing Layoff Are Probable

Dechert LLP on

The Worker Adjustment and Retraining Notification (WARN) Act in the U.S. requires that employers give sixty days’ notice to its employees before effecting a mass layoff. The WARN Act contains exceptions to the notice...more

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